The Points Guy founder Brian Kelly breaks down airline loyalty programs after the Department of Transportation opened an investigation into the frequent flyer programs.
The Department of Transportation (DOT) says it is reviewing consumer complaints about airline loyalty programs after legislators claimed the programs were deceiving the millions of consumers who participate in them.
“We plan to carefully review complaints regarding loyalty programs and exercise our authority to investigate airlines for unfair and deceptive practices that hurt travelers as warranted,” the DOT told FOX Business in a statement.
Airlines for America, which advocates on behalf of the U.S. airline industry, did not immediately respond to FOX Business’ request for comment.
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The DOT said officials have been actively meeting with major U.S. carriers regarding the issue after Sens. Dick Durbin, D-Ill., and Roger Marshall, R-KS., raised concerns in a letter sent to the DOT and the Consumer Financial Protection Bureau.
In late October, the senators asked the agencies what they were doing to help passengers, arguing that the airlines have “engaged in unfair, abusive, and deceptive practices” concerning frequent flyer programs.
Travelers walk with their luggage in the international terminal at Los Angeles International Airport on Aug. 31, 2023 in Los Angeles. (Mario Tama/Getty Images / Getty Images)
“While these programs may have originated to incentivize and reward true ‘frequent flyers,’ they have evolved to include co-branded credit cards and now often significantly or exclusively focus on dollars spent using these co-branded credit cards,” the letter read.
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There are also “troubling reports that airlines are engaged in unfair, abusive, and deceptive practices with respect to these loyalty programs,” the letter continued.
The senators, for example, pointed to reports that suggested how airlines were changing their point systems in a way that was unfair to customers, such as devaluing points and making it harder for travelers to receive rewards.
The letter was sent after Delta Air Lines CEO Ed Bastian pledged that the carrier was updating its frequent flyer program after recent changes caused animosity among its most loyal customers.
The carrier originally limited airport club access and said Medallion status would be based on spending only, rather than also counting flights.
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“It’s been a challenge to balance the growth of our membership with our need to deliver premium service experiences,” Bastian said in a statement after getting numerous emails from upset customers.
“We made some difficult program decisions to address this issue and ensure we are delivering elevated service to our Members. But your response made clear that the changes did not fully reflect the loyalty you have demonstrated to Delta,” he added.
Durbin’s office declined further comment. Marshall’s office has not immediately responded to FOX Business’ request for comment.
Delta Air Lines deferred comment to Airlines for America.
